Industry: Financial Services

What do the next three months look like for the United States economy? 

That’s the question that’s seemingly on the tip of everyone’s tongue ever since the U.S. imposed sweeping tariffs on several countries around the world. Accordingly, bank customers in the U.S. are trying to figure out exactly what that will mean for their finances, particularly those who are struggling. 

According to JD Power data, 35% of customers are financially healthy,[1] a new 13-month high. But even as customers seem to be gaining some ground on the financial health front, many are expressing uneasiness about their future finances.

Financial Health Gets Another Boost

The number of customers who are financially healthy increased to 35%, a 13-month high. As observed between January and February, this trend may not be long-lasting, but after financial health was stagnant for so long, the fact that there has been more movement of late could be seen as a positive development. 

The percentage of bank customers who say the cost of goods is increasing faster than their income fell slightly to 66%. Stressed customers (83%) were most likely to say they are grappling with the cost of goods, up from 81%. Just 51% of healthy customers say they are having trouble keeping up with the cost of goods, down from 58%. 

Tough Times Ahead?

Less than half (43%) of customers say their current financial situation is stable and secure. That rate is virtually identical for customers under 40 and over the age of 40 (42% vs. 43%, respectively). 

Conversely, 41% believe their financial situation is at risk of getting worse in the next three months. While stressed customers (45%) were most likely to agree that their finances are at risk, healthy customers (42%) are not far behind.

When asked about the root of their fears, 63% believe that their cost of living will be worse in the next three months, while 34% say they will have trouble managing housing costs, and 26% say the stock market will decline and hurt their investments.

Rising to the Challenge

Customers have been operating under the specter of another economic downturn for years. And while that has never fully materialized, the most recent events have certainly sparked some concern. That is enough to get many customers wondering if this is finally the other shoe getting ready to drop.

As the U.S. sits down with various countries to negotiate these tariffs, those fears may soon be quelled. But regardless of the specifics of the next several months, one thing is certain: Customers will likely seek counsel in the entities they know best. Banks need to be prepared to step up in times of uncertainty and help customers navigate these unpredictable times. Those that can help will enjoy better customer relationships and financially healthier clientele. 

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in March 2025. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

Despite ongoing financial strain, customer satisfaction with retail banks is on the rise. New findings from the JD Power U.S. Retail Banking Satisfaction Study reveal how banks are adapting to consumer needs and building trust. Jennifer White, Senior Director of Banking Intelligence, shares the latest trends. 

Rising Satisfaction Amid Financial Strain
Even though consumers are facing economic hardships—reflected in declining deposits and investment amounts—overall satisfaction with their banks has increased. Consumers are more likely to return for additional products, and Net Promoter Scores (NPS) have improved. Despite the challenging financial environment, customers are finding value in their banking relationships.

Banks Are Rising to the Challenge
“Banks are spending more time helping customers manage their financial lives in a way that goes well beyond routine transactions,” White explained.

Building on this positive sentiment, banks have been investing heavily in digital tools and personalized services to support customers in managing their finances. Features like budgeting tools, savings goal trackers, and proactive alerts in mobile apps are helping consumers feel more empowered to navigate their financial situations. These efforts are a key reason behind the increasing satisfaction scores.

Tackling the “Three F’s” (Fees, Fairness, and Fraud)
However, consumer concerns about fees, fairness, and fraud persist. Despite these challenges, banks have been taking necessary steps to address these issues. Increased transparency around fees, enhanced fraud protection measures, and efforts to ensure fair treatment are helping build greater trust with customers. While there’s still work to do, these improvements are contributing to more positive customer experiences.

Declining Deposits
The study also finds that the average deposits held by consumers at their primary bank continue to decline. With 33% of consumers reporting less than $1,000 in deposits, the divide between those with significant savings and those struggling to save is widening. This highlights the financial strain many consumers are facing and presents a challenge for banks in providing accessible financial solutions.

Financial Advice Is Gaining Traction—But Awareness Is Still a Hurdle
More customers are recalling their banks’ advice and guidance—and many are taking action. Still, banks face challenges in cutting through the noise.

“The leak is still really occurring at just getting customers’ attention,” White said. “That, at the core, is about the volume of messaging, the spread of the messaging over a calendar year. It’s about making sure that the content is personalized.”
Banks that succeed here are integrating guidance across channels—from in-branch conversations and call centers to in-app banners and automated savings nudges.

Whether through a mobile app or in-person interactions—customers feel more supported in their financial decisions, contributing to their overall satisfaction.

What’s Next for Retail Banking?

The findings from this year’s study make one thing clear: to maintain long-term customer loyalty, banks must continue to:

• Invest in digital tools that enable consumers to manage their financial lives with ease and confidence.
• Enhance transparency around fees, fraud protection, and fairness to foster trust.
• Provide personalized financial advice that empowers customers to make informed financial decisions.

As the banking landscape continues to evolve, these findings underscore the importance of banks acting as trusted partners in helping customers manage their financial health and navigate uncertain times.

Read the JD Power 2025 U.S. Retail Banking Satisfaction Study press release for more key findings.

Read the Press Release

Banking and Payments Intelligence Report
March 2025

As Financial Health Declines, Customers Try to Parse How New Tariffs Will Affect their Spending

As the inflation rate dipped below 3% in February, a whole new financial landscape has emerged for bank customers in the United States in light of new tariffs on foreign imports.

Earlier this month, the United States imposed a new 25% tariff on imports from Mexico and Canada. Accordingly, customers are trying to figure out exactly what that will mean for their finances, particularly those who are struggling.  

According to JD Power data, 31% of customers are financially healthy,[1] a rate at which customers have been largely stuck since 2024. And even though the headline inflation rate has come down, many customers are still saying it affects their day-to-day decisions. Could tariffs start to have the same kind of effect?

Financial Health Returns to Baseline    

After a slight upward swing, the number of customers who are financially healthy returned to 31% in February, while 46% of bank customers were in the vulnerable category. The rate of vulnerable customers represents a 13-month high.

The percentage of bank customers who say the cost of goods is increasing faster than their income rose to 67%. Healthy customers represented the biggest increase, up to 58% from 52% last month, a sobering metric that could portend a further decline in customer health.

Tariff Trouble?

Prior to tariffs taking effect on March 6, less than half (47%) of U.S. bank customers said that these tariffs would hurt their financial situation, while 27% said it would make no difference and 7% said it would help their financial situation. Nearly one-fifth (19%) of customers said they did not know. Meanwhile, bank customers in Canada had a more pessimistic view, as 60% said tariffs would hurt their financial situation and just 20% said they would make no difference. Eight in 10 (79%) customers in Canada said that tariffs would increase inflation, while 57% of U.S. customers agreed. Interestingly, 9% of U.S. customers said tariffs would lower inflation, compared with only 2% of customers in Canada. 

Regardless of how tariffs affect the economies of the U.S. and Canada, one thing seems certain: Bank customers north of the border plan to buy fewer American products. Nearly three-fourths (74%) of customers in Canada say they will buy fewer U.S. products in light of tariffs, while 22% say it will not make a difference in their purchasing decisions.

Navigating the Uncertainty 

As the U.S. begins to define carve outs for tariff exemptions, and companies rush to secure them for their products, it’s still unclear exactly what the end of result of these tariffs will look like. But for customers trying to find some certainty in a very fluid situation, banks have a chance to step in offer some stability.

Customers who are both dialed into the latest developments of this trade standoff and those that haven’t been paying attention are just as susceptible, and they’ll need guidance to get through it. Short of some momentary glimmers, the financial health of customers in the U.S. has been largely unchanged, even as inflation has fallen steadily since 2023. Banks that can keep their customers informed and help them chart a course through the clutter will stand to build better relationships.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in February 2025. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

The Buy Now Pay Later (BNPL) market continues its rapid expansion, solidifying its position as a preferred payment method for many consumers. In the latest JD Power Buy Now Pay Later Satisfaction Study, findings reveal not only an increase in BNPL usage but also critical insights into why consumers are turning to these payment solutions. This month, JD Power’s Miles Tullo sat down with Sean Gelles, Senior Director, Payments Intelligence,  to discuss the study’s key takeaways. 

BNPL is Surging 

One of the most striking findings from the study is the significant year-over-year growth in the percentage of consumers using BNPL usage.  BNPL was the payment method that grew the most in terms of the percentage of consumers saying they used it.  Usage was particularly strong during the holiday shopping season, with Gen Z shoppers leading the charge. “It was really surprising to see just how much BNPL surged—especially among younger consumers,” said Gelles. 

Why Consumers Choose BNPL 

While the primary appeal of BNPL remains its ability to defer payments, the study highlights another crucial factor: repayment terms. Consumers report that they appreciate the structured and predictable nature of BNPL repayment plans. 

“When we look at credit cards, deferred payment is an option there as well,” Gelles explained. “But interestingly, ‘repayment terms are reasonable’ doesn’t even rank in the top 10 reasons why people use credit cards. That tells us BNPL is filling an important gap in the market.” 

Defining the BNPL Market 

The Buy Now Pay Later Satisfaction Study examined both fintech-based BNPL providers—such as Klarna, Afterpay, and Affirm—and card-based installment plans from major credit card issuers. While fintech players have popularized BNPL at checkout, traditional financial institutions have entered the space by offering fixed payment plans that allow consumers to convert credit card purchases into structured installment payments. 

The Fintech Challenge: Building Long-Term Trust 

One of the key differentiators in satisfaction levels appears to be the longevity of the customer relationship. Traditional financial institutions have a built-in trust advantage, as their customers are often long-term credit card users. 

“The biggest advantage for card-based BNPL plans is their longstanding brand relationship with customers,” Gelles noted. “Many users of these plans have been with their banks or card issuers for years, which fosters greater trust and satisfaction.”

In contrast, many fintech BNPL users are either first-time or relatively new customers, making it harder for these brands to achieve high satisfaction scores. However, the study shows that customer satisfaction increases the longer consumers use a BNPL provider, indicating that fintech firms are making progress in building loyalty. 

What’s Next for BNPL? 

As BNPL continues to grow, both fintech and traditional financial institutions will need to refine their strategies to capture and retain consumers. The study’s findings suggest that trust and repayment flexibility will remain key differentiators in driving long-term satisfaction. 

With continued advancements in digital payments and shifting consumer preferences, the BNPL landscape is poised for even greater transformation in the years ahead. 

You can read the latest BNPL press release to learn more key findings and see how each brand ranks for overall customer satisfaction. 

Read the JD Power 2025 U.S. Buy Now Pay Later Press Release 

While the inflation rate climbed above economists’ expectations in January, the overall outlook for bank customers in the United States offers some modest optimism.

According to JD Power data, 34% of customers are financially healthy,[1] the highest rate in more than a year. While the improvement isn’t a massive leap by any means, it is an encouraging metric following the holiday season.

As some customers begin to find their financial footing, concerns persist about anything that could potentially set them back, particularly the risk of credit or debit card fraud. And for almost half of customers, debit card fraud casts a bigger shadow than unauthorized credit card purchases.

Financial Health Gets a Slight Boost                                                      

The number of customers who are financially healthy rose to 34% in January, while 41% of bank customers were in the vulnerable category. Both numbers reflect 13-month bests in their respective categories, albeit a modest improvement.

The percentage of bank customers who say the cost of goods is increasing faster than their income rose to 66%. Vulnerable customers saw an increase to 78% and over extended customers saw an increase to 59%, perhaps an indication that the improvements in financial health will not be long-lasting.

Security of Cards

Almost half (49%) of customers say that banks offer the same level of security protection for both their debit and credit cards. This rate is highest among healthy (56%) and stressed (52%) customers.

When asked which type of fraud is easier to resolve—debit or credit card—nearly half (47%) of customers said their credit card was easier to manage. Whether that perception is true or not, it does chart a course for banks and/or card issuers that are looking to bolster confidence in their security. More messaging may be needed about the security of their debit cards and issue resolutions if/when those instances of debit card fraud occur.

Safe and Sound

Whether customers’ financial health builds on this past month’s incremental gains or not, credit and debit cards play a big overall role in the overall picture. And with banks and issuers hoping to build confidence in the security of their products, more communication is needed around the safety of debit cards.

Customers need to feel secure to store card information, especially those who could have their financial situation go from bad to worse with even a minor incidence of fraud. Communicating that banks and issuers prioritize the same support around any incidence of fraud will undoubtedly boost utilization of debit cards, which may lead to better budgeting and customers paying lower interest rates. Time will tell if banks can effectively deliver this message.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in January 2025. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

A new year has arrived, but the same financial malaise persists. Inflation ticked up in December 2024 and the Consumer Price Index saw a 2.9% year-over-year increase, which is keeping bank customers in the United States on their heels.

According to JD Power data, 31% of customers are financially healthy[1], a rate that has largely remained unchanged since the summer. As a result, customers are trying to decipher new ways to get a handle on their finances, with many turning to banks in the hopes of a more holistic view of their finances. Part of that search includes an increased interest in open banking, which is the practice of banks securely exchanging financial information with other financial institutions or third parties, such as financial advice apps, digital payment processors and other service providers. 

Financial Health Remains Unchanged                                                 

The number of customers who are financially healthy remained the same in December at 31%, while 44% of bank customers fall into the vulnerable category.

The number of bank customers who say the cost of goods is increasing faster than their income also remained steady at 65%. Vulnerable customers saw a slight decrease to 74%, while healthy customers actually rose slightly to 51% from 49%.

A Holistic View

As customers continue to grapple with a tenuous financial landscape, many are expressing a bigger interest in seeing a complete picture of their finances in one place. One way to accomplish that is through more comprehensive financial aggregator tools. Overall, 41% of bank customers say it is extremely important for a bank’s mobile app to show the balances of their external accounts, up from 32% from May.

That interest has grown across all financial health segments, with stressed customers seeing the biggest jump in interest since the question was last asked in May 2024. Even older customers (40 and older) saw an increase of 9 percentage points.

Open for Business

The desire for more complete financial tools is indicative of an overall customer trend toward open banking. While historically, only customers and their banks have had access to their financial data, open banking is now enabling the development of new financial services products and offerings. By creating an easier flow of information from the bank to third parties, customers are finding improved ways to manage their money, make payments, and gain access to credit. With the practice gaining popularity with customers, the onus now shifts to banks to meet customers where they are and support better experiences—even when their customers are working with third parties.

Overall, more than one-third (36%) of banking customers are aware of open banking, with overextended (54%) and younger (53%) customers most familiar with the practice.

There is also a strong relationship between open banking and financial aggregator tools. For example, customers who are aware of open banking are more likely to use financial aggregator tools and understand the value of these tools.

A Better Understanding

With many customers still stuck in the same financial predicaments for the better part of two years, many seem to have a genuine interest in new ways to get a handle on their finances, and a willingness to try new solutions. For banks, that means they’ll have to be receptive to customer desires and tailor their products to those needs. 

Open banking and better financial aggregator tools allow customers to glean complete insights into their finances and that is a vital component of understanding how to take the next step. Banks that can provide this intelligence stand ready to benefit from a more informed and, eventually, more financially healthy customer base.

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 retail bank customers nationwide and was fielded in December 2024. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

As we approach the end of the year, the major storylines that have developed in the credit card industry are creating ripple effects through the entire financial landscape.

Even as inflation dropped to its lowest level since February 2021, customers are still trying to find their footing and they are leaning on their credit cards to help.

Using data from the JD Power 2024 U.S. Credit Card Satisfaction Study we have identified the biggest trends in the credit card industry this year and analyzed how customers are behaving in response to these trends. From late fees to card delinquencies to revolving card debt, here are three issues set to define the year ahead.

The Spirit of the Late Fee Cap            

This past March, the Consumer Financial Protection Bureau (CFPB) announced that it would be capping credit card late fees at $8 per occurrence. The news came as a welcome sign for customers. In the spring, 25% of credit card customers told JD Power that they had paid a late fee in the past 12 months, and 73% of those had paid more than $8.

But in May, the American Bankers Association (ABA) and U.S. Chamber of Commerce filed a legal challenge and a federal judge agreed, which blocked the CFPB’s plan to curb fees. The cap could be resurrected. In September, Former President Donald Trump made a campaign promise that, if elected, he would support a cap on credit card interest rates.

While the spirit of the rule seems consumer friendly, it’s worth noting that neither the late fee nor interest rate cap proposals would immediately affect the majority of U.S. cardholders. Only 18% of U.S. cardholders say they have paid more than an $8 late fee, and 24% of cardholders report having an interest rate above 10%. It’s likely these numbers are larger, as most cardholders don’t know such pricing details about their credit cards and may not be aware of even benefitting from such policy caps. Still, some think the policy will resonate with customers and as an early mover gesture. Notably, PNC and Wells Fargo have already begun reducing credit card late fees.

As is often the case, when one issuer finds success in a strategy, others follow. Keep an eye out for more issuers offering late fee caps to try to build goodwill with their existing customers while enticing new ones.

Are Card Delinquencies Really on the Rise?

While high consumer prices and inflation fatigue may make it seem like credit card payment delinquencies are on the rise, JD Power data finds that the level of revolving card debt and card late payment fees is flat year over year.

That said, cardholders do say they are having a harder time being able to pay their bills—credit card or other—on time now than they did in 2023 (ability to pay fell to 4.26 in 2024 vs. 4.29 in 2023 on a 5-point scale). While some brands are seeing their customers’ ability to pay bills on time fall significantly, brands with more financially healthy[1] customers and that have a single product focused on credit building are seeing improvements.

As issuers find more ways to attract desirable customers, some may opt to narrow their focus and tailor their marketing strategies to customers that are actively looking to consolidate or pay down their debt. Look for issuers to try to build awareness for their debt management tools as well, hoping to build engagement and bolster customer awareness and education.

Rich in Miles

After years of pent-up travel demand during the pandemic, customers are once again taking to the skies, and they’re doing so in record numbers. But after airline rewards credit cards came under attack at a May CFPB hearing, some analysts wondered if customers are actually racking up big credit card debt just to accrue airline miles.

According to JD Power data, 40% of airline cardholders have revolving debt, which is significantly below 51% all card average. Airline cardholders are also significantly more financially healthy (61% vs. 46% all card average) and are much more likely to say that their debt is completely manageable. Of course, there are exceptions, but by and large, airline cardholders tend to manage their finances relatively well.

It makes it clear why smaller carriers have an issue with bigger brands that can offer airline card miles: these types of customers are extremely attractive and they’re drawn to this perk. And while that may make it difficult for smaller carriers to compete in the marketplace for customers, it also places an onus on companies to find a way to match that kind of value proposition and offer a service that is as attractive as discounted airfare.

Finding the Opportunity

As issuers take appraisal of the developments of 2024, the experiences of the past 12 months offer a roadmap to new strategies for 2025. The marketplace is moving in a new direction, and a new breed of customers are prioritizing different things. How they are interacting with their credit cards, and what they hope to gain from a relationship with an issuer should influence these next steps.

Issuers that can digest this information and meet customers where they are will not only reap the benefits of increased customer loyalty and retention, but they will become more attractive in a very competitive marketplace.

Find out More

This Banking and Payments Intelligence Report is based on responses from 38,852 credit card customers nationwide and was fielded from June 2023-June 2024. It was authored by John Cabell, managing director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Mr. Cabell or to learn more about the underlying research.

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.